Aberdeenshire based Bancon Group has announced it is “on track” to deliver its three-year plan aimed at overcoming “challenging” trading conditions and a “significant” reorganisation within the group.

Lodging its accounts for the 16 month period to 31 March 2016, the independent housebuilder and construction group has seen turnover increase to £110 million, from £82m in 2014. However, the group incurred an operating loss before exceptional items of £2m and £2.1m of exceptional costs, primarily related to the restructuring exercise.

Since the financial year end, Bancon Group has secured a new three year banking facility of £25.5m with existing lender Santander to support its business plan.

Despite the market conditions, Bancon Homes recorded a profit and successfully launched three developments in the period, whilst making significant investments in people and products to position the business for future growth.

Deeside Timberframe also enjoyed an excellent trading period, significantly increasing profits and benefiting from its wider geographical spread and increased housing activity. Further investment was made in resources to broaden the company’s reach and market penetration.

John Irvine, chief executive of Bancon Group, said: “Overall these are robust results, given the considerable investment in reshaping the business in the last 18 months.

“Our homes business continues to perform well in a tough market and our timber frame division is performing strongly across the country. However, the construction business had a disappointing period, incurring losses on several contracts, which commenced in previous years.

“The combination of market conditions and these loss-making construction contracts necessitated a transition for the group to a more efficient and effective structure. The reorganisation implemented changes which the directors are confident have now addressed the historic issues and we currently have a strong order book. This was achieved in a short space of time and the current year already shows significant improvements. We are well on track and well-positioned to deliver our plan. This confidence was recently underlined by a new £25.5m facility with Santander.”